Question 5

The following balances were extracted from the basic of Any Pet Shop on 31 December 2022.

___Accounts_______________Amounts(RM)

Building 200,000 Motor Vehicle 120,000 Office Equipment 70,000 Profit as at 1.1.22 10,850 Capital 100,000 Acc dep as at 31.12.22 60,000 (Building) Acc dep as at 31.12.22 69,250 (Motor Vehicle) Acc dep as at 31.12.22 40,000 (Office equipment) Sales 612,000 Commision revenue 100,000 Purchases 348,000 Sales discounts 5,000 Purchase discounts 3,500 Opening inventory 12,000 Trade receivables 26,700 Trade payable 43,200 Administrative expenses 18,000 Staff training cost 4,000 Bad debts 12,500 Motor expenses 27,000 Rental 90,000 Bank overdraft 13,400 Wages and salaries 115,000 Telephone and internet 6,000 Unearned commision for Dec22 2,000 Drawing 10,000 Interest received 2,000 Purchase returns 8,000

Addtional Information:

a.The depreciation for building and office equipment us chargef at 2% and 20% per annum using the straight-line method reslectively. b.The depreciation for motor vehicle is charged at 20% per annum using the reducing balance method. c.The inventory as at 31 December 2022 was RM15,210

Required: a.Prepare the stament of comprehensive income for the year ended 31 December 2022.

Question 4

Rama calculated his net profit for the year as RM75,886, but is not sure how yo treat the RM90(debit) balance on the suspence account.Control accounts are not maintained.On reviewing Rama's records, it noted that: i.a cash sale for RM900 was recorded in the cash book, but no other entry was made. ii.the purchase daybook was under cast by RM900 iii.a cheque paid yo a supplier was correctly entered in the cash book as RM540, but RM450 was posted to the supplier's account. iv.a cheque received from s customet for RM11,700 was acceptedbin full settlement of a balance of RM11,790. No entries were made for the discount. v.travel expenses jnclude a payment of RM405 for Rama's holiday.

Required: a.Indicate whether or not Rama's calculation of net profit was affected by each of the errors, and calculate his corrected net profit for the year.

b.Indicate which of the errors are an example of

i.error of omission ii.arithmetical error. iii.error of transposition. iv.error of principle..

Question 2 At November 2022, the balance on the accounts receivable control account in Emma's nominal ledger was RM39,982.The total of the list of balances on the account receivable's personal accounts was RM39,614.Emma has discovered the following errors:

i.an invoice for Rm288 was entered correctly in the nominal ledger, but no entry was made in the personal accounts. ii.a payment of RM1,300 was accepted in full settlement of a balance RM1,309.No entry was made yo record the discount. iii. a credit note issued to a credit customer for RM120 was incorrectly treated as an invoice. iv.an addition error on a personal account meant that the balance was undetstated by RM27. v.s customer lodged a payment of RM325 directly to Emma's bank account.The balance on the personal account was adjusted, but no entry was made in the nominal ledger. vi.an invoice for RM644 was posted as RM466 in the nominal ledger. vi.a credit balance of RM449 on a custoner's account was treated as a debit balance.

Required: a.show the accounts receivable control sccount, including the necessary correcting entries and the corrected balance. b.Prepare a reconciliation of the list of balances to the corrected balance on the accounts receivable account. c.State the correct accounts receivable's balance for inclusion in the final accounts and indicate where it should be reported on the statement of financial position.

b.Prepare the statement of financial position as at 31 December 2022.